Recent developments have intensified concerns regarding Pakistan's power sector, as the National Electric Power Regulatory Authority (Nepra) reported that 61% of the Rs 2.94 trillion power bill for FY 2024-25 was allocated to fixed capacity payments, despite low plant utilization rates of 42.5% for thermal plants and 36.6% for renewable energy facilities. This underutilization has resulted in significant financial strain, with Rs 397 billion lost by distribution companies (Discos) due to unchecked transmission and distribution (T&D) losses and weak bill recoveries, as highlighted in Nepra's latest performance evaluation report. The report emphasized that excessive T&D losses alone accounted for Rs 265 billion, compounding the circular debt crisis and exposing governance failures within the sector.
BUSINESS
Pakistan'S Power Sector Faces Rs 472 Billion Losses, Nepra Reports
84% NEGATIVE
Pakistan's power sector faces crisis as 61% of Rs 2.94 trillion bill is fixed payments, with low plant usage causing Rs 472 billion losses. Governance failures worsen the circular debt issue.
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